Tollens' reagent is used to detect the presence of aldehydes and alpha-hydroxy ketones. It contains silver ions coordinated with ammonia to form a colorless, oxidizing solution. When reacted with an aldehyde or alpha-hydroxy ketone, the reagent is reduced to metallic silver, producing a silver mirror coating. Tollens' reagent has applications in qualitative organic analysis, staining techniques like the Fontana-Masson stain, and producing silver mirror coatings on glassware and telescope mirrors.